nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2012‒11‒17
fourteen papers chosen by
Joao Jose de Matos Ferreira
University of the Beira Interior

  1. Foreign subsidiaries and technology sourcing in Spain By Holl, Adelheid; Rama, Ruth
  2. Are Research Spin-Offs More Innovative? Evidence from a Matching Analysis By Stephan, Andreas
  3. Clustering and firm performance in project-based industries: The case of the global video game industry, 1972-2007 By Mathijs De Vaan; Ron Boschma; Koen Frenken
  4. Ambitious entrepreneurship: antecedents and consequences By Julie Hermans; Marcus Dejardin; Johanna Vanderstraeten; Dendi Ramdani; Erik Stam; Arjen van Witteloostuijn
  5. Foreign firms and the diffusion of knowledge By Alexander Monge-Naranjo
  6. Globalization, Recession and the Internationalization of Industrial Districts: Experiences from the Italian Gold Jewellery Industry By Valentina De Marchi; Joonkoo Lee; Gary Gereffi
  7. Beyond Productivity Measurement and Strategies: Performance Evaluation and Strategies in Services By Faridah Djellal; Faïz Gallouj
  8. Determinants of Spanish Firms' Life Cycle and Job Creation: A Pseudo-Panel Approach By Roxana Gutiérrez Romero
  9. Network Broadening and Reinforcing for Facilitating Innovation: Value creation networks in the Japanese music industry (Japanese) By INOUE Tatsuhiko; NAGAYAMA Susumu
  10. Firm Exporting and Employee Benefits: First Evidence from Vietnam Manufacturing SMEs By Huong Vu; Steven Lim; Mark Holmes; Tinh Doan
  11. Does Trust Matter For Entrepreuneurship : Evidence From A Cross-Section Of Countries By Kodila-Tedika, Oasis; Agbor Agbor, Julius
  12. The evolution of the Italian Temporary Work Agency field: A path dependence perspective By Alessia Berni; Mariavittoria Cicellin; Stefano Consiglio; Luigi Moschera
  13. Living Up to Expectations: Corporate Reputation and Sustainable Competitive Advantage By Luis Cabral
  14. Core competencies, matching, and the structure of foreign direct investment: an update By Federico J. Díez; Alan C. Spearot

  1. By: Holl, Adelheid; Rama, Ruth
    Abstract: Firms acquire external technological knowledge via different channels. In this paper we compare the technology sourcing via R&D outsourcing, R&D outsource offshoring, domestic cooperation for innovation and international cooperation for innovation of foreign subsidiaries and domestic firms. Because the different technology sourcing choices are potentially correlated we apply a multivariate probit specification which allows for systematic correlations among the different choices. The results show that the different technology sourcing choices are indeed interdependent and that foreign subsidiaries show a different pattern of external technology sourcing. Compared to affiliated domestic companies, foreign subsidiaries show a smaller propensity for external technology sourcing via R&D outsourcing from independent firms in the host country, for R&D outsource offshoring, and for international cooperation for innovation. In contrast, foreign subsidiaries show a greater propensity for domestic cooperation for innovation.
    Keywords: Multinational enterprise; foreign subsidiaries; R&D outsourcing; cooperation for innovation; multivariate probit model
    JEL: F23 O32
    Date: 2012–10–30
  2. By: Stephan, Andreas (Jönköping International Business School, CESIS Stockholm, DIW Berlin)
    Abstract: The purpose of the paper is to analyze whether research spin-offs, that is, spinoffs from either research institutes or universities, have greater innovation capabilities than comparable knowledge-intensive firms created in other ways. Using a sample of about 1,800 firms from high-innovative sectors, propensity score matching is used to create a sample of control firms that are comparable to the group of spin-offs. The paper provides evidence that the investigated 123 research spin-offs have more patent applications and more radical product innovations on average compared to similar firms. The results also show that research spin-offs’ superior innovation performance can be explained by their high level of research cooperation activities and by location effects. Being located in an urban region and proximity to parent institutions is conducive for innovation productivity.
    Keywords: Spin-Offs; Innovation Performance; Propensity Score Matching; Locational Factors; Cooperation
    JEL: M13 O18 R30
    Date: 2012–11–05
  3. By: Mathijs De Vaan; Ron Boschma; Koen Frenken
    Abstract: Explanations of spatial clustering based on localization externalities are being questioned by recent empirical evidence showing that firms in clusters do not outperform firms outside clusters. We propose that these findings may be driven by the particularities of the industrial settings chosen in these studies. We argue that in project-based industries, negative localization externalities associated with competition grow proportionally with cluster size, while positive localization externalities increase more than proportionally related to cluster size. By studying the survival patterns of 4,607 firms and 1,229 subsidiaries in the global video game industry, we find that the net effect of clustering becomes positive after a cluster reaches a critical size. We further unravel the subtleties of the video game industry by differentiating between exits by failure and exit by acquisition, and conclude that being acquired is best considered as a sign of success rather than as a business failure.
    Keywords: localization externalities, survival analysis, acquisition, spinoff, cluster, video game industry
    JEL: L25 R11 R12
    Date: 2012–11
  4. By: Julie Hermans (University of Namur); Marcus Dejardin (University of Namur, Catholic University of Louvain); Johanna Vanderstraeten (University of Antwerp); Dendi Ramdani (University of Namur); Erik Stam (Utrecht University); Arjen van Witteloostuijn (University of Antwerp, University of Tilburg)
    Abstract: In the recent literature on entrepreneurship, a growing body of knowledge recognizes that some entrepreneurs have higher ambitions than others and that these entrepreneurial ambitions are an important antecedent of actual firm success. Consequently, it is not surprising that ambitious entrepreneurship gradually becomes a topic of high interest for policy makers and scholars (e.g., Gundry and Welsch, 2001; Van Gelderen, 2006). Nevertheless, there does not yet exist a clearly defined overview of what is known (and not known) about this topic. Moreover, although authors advocate that the difference between high and low entrepreneurial ambitions should be recognized (Cassar 2007), few studies actually distinguish between ambitious entrepreneurs and their less-ambitious counterparts. In this paper, we address this gap and provide a structured overview of existing literature on ambitious entrepreneurship. Our analysis confirms that ambitious entrepreneurs might be an interesting population for the research community as well as for policy makers and other practitioners. Indeed, it suggests that ambitious entrepreneurs have a specific impact upon the economy and contribute to the quality of entrepreneurial activity. From a conceptual point of view, the review reveals that there is no consensus with regard to the operationalization of ambitious entrepreneurship and growth ambitions in general. As outcomes of this review, we indentify promising paths for future research and we propose the concept of a projecting process to clarify the link between growth attitude, growth intention and growth expectation.
    Keywords: ambition, motivations, growth, entrepreneurship
    JEL: D84 L25 L26 M13
    Date: 2012–11
  5. By: Alexander Monge-Naranjo
    Abstract: This paper constructs a model to examine the impact of foreign firms on a developing Country’s own accumulation of entrepreneurial knowledge. In the model, entrepreneurial skills are built up on the basis of productive ideas that diffuse internally (at the inside of firms) and externally (spillovers.) Openness to foreign firms enhances the aggregate exposure to ideas but also reduces the returns to investing in entrepreneurial skills. When externalities are present, openness can be welfare reducing. However, regardless of the relative importance of externalities, simple quantitative exercises suggest that the gains of openness are positive and can be large.
    Keywords: International business enterprises ; Technology - Economic aspects
    Date: 2012
  6. By: Valentina De Marchi (University of Padova); Joonkoo Lee (Duke University); Gary Gereffi (Duke University)
    Abstract: Globalization and the recent recession crisis are significantly challenging Italian industrial districts (IDs), driving deep transformations in their internationalization, innovation and organization strategies. With our empirical focus on a single industry (gold jewellery) and a specific country (Italy), the evidence in this paper sheds light on the differences in how three industrial districts within the gold jewellery sector (Valenza Po, Arezzo and Vicenza) compete in the global arena. Our comparative analysis reveals striking differences among these districts with regard to their economic performance, as well as their upstream and downstream internationalization strategies, in response to two industry shocks Ð increasing global competition in the early 2000s and the world economic recession of 2008-09. In addition, we find that these districts changed their internal strategies over time in order to tackle the two crises. How these industrial districts are integrated within global value chains is an important explanatory factor to be considered, in addition to internal factors such as structural characteristics and specific business opportunities
    Keywords: industrial districts; globalization; recession; internationalization; the jewellery industry; global value chains.
    Date: 2012–10
  7. By: Faridah Djellal (CLERSE - Centre lillois d'études et de recherches sociologiques et économiques - CNRS : UMR8019 - Université Lille 1 - Sciences et Technologies); Faïz Gallouj (CLERSE - Centre lillois d'études et de recherches sociologiques et économiques - CNRS : UMR8019 - Université Lille 1 - Sciences et Technologies)
    Abstract: The concept of productivity is at the heart of economic theory, management science and operational management of firms and organizations. Despite the theoretical and operational importance of this concept, in recent years, its absolutism has been challenged. Services are often at the heart of this critical debate. Both conceptually and methodologically, services are indeed a major challenge to the concept of productivity. The objective of this paper is to review issues raised by services and their relationships with productivity, from two different but related perspectives: 1) a theoretical and methodological perspective focused on the problems involved in defining and measuring productivity, and 2) a strategic perspective focused on identifying generic productivity and performance strategies in service firms and organizations.
    Keywords: Service, productivity, measure, performance
    Date: 2012–06–01
  8. By: Roxana Gutiérrez Romero (Departament d'Economia Aplicada, Universitat Autonoma de Barcelona)
    Abstract: This paper examines the role of human capital, individual entrepreneurial traits and the business environment on firms’ life cycle and on job creation in Spain. For this purpose, we have constructed a pseudo-panel, by using the Global Entrepreneurship Monitor survey over the period 2001-2008. We have found that the creation, maturity and survival of firms were aided by the availability of bank credit and the large immigration inflows that Spain received over this period. However, of these two factors, only bank credit had a positive effect on the creation of jobs and on improving expectations of job expansion. The relatively high levels of youth unemployment experienced even before the crises of 2008 hurt the firm’s chances of maturity and survival. The results also suggested that the gender gap in entrepreneurial activities had narrowed. In relative terms, women with higher levels of education were more likely to create mature firms than men. Based on the empirical findings and those of related literature, the paper offers policy recommendations to foster a sustainable entrepreneurial sector capable of contributing to the recovery of the Spanish economy.
    Keywords: firm's life cycle, job creation, credit, immigration, pseudo-panel, instrumental variables
    JEL: D22 D92 O16 R23 C23 C26
    Date: 2012–11
  9. By: INOUE Tatsuhiko; NAGAYAMA Susumu
    Abstract: This study shows empirical research regarding the value creation network as it relates to facilitating product innovation. What kind of influence does "network broadening" with new players or "network reinforcing" with existing players have on value creation and innovation generation? Furthermore, what kind of environmental change causes network reinforcing and network broadening? This paper attempts a network analysis of the Japanese music industry; a case considered to be at the forefront even in the contents industry, which has been receiving attention in recent years from movements such as the Cool Japan policy. We gave particular attention to the value creation network consisting of multiple players, each of whom possesses varying business models. Due to the differences in the method of revenue generation, it is predicted that, given the environmental uncertainty, relationship building would vary. The result shows that because of factors such as the differences in business models between music production related factors and the investment related factors in shared copyright, there are contrasting relationship building patterns in a context of environmental uncertainty. In addition, the study indicates that product innovation is stimulated through network broadening by the production related factors and that value creation is prompted by network reinforcing of investment related factors.
    Date: 2012–11
  10. By: Huong Vu (University of Waikato); Steven Lim (University of Waikato); Mark Holmes (University of Waikato); Tinh Doan (Ministry of Business, Innovation & Employment)
    Abstract: This study examines linkages between the export participation of firms and employee benefits in terms of wages and employment quality. Based on a uniquely matched firm-worker panel dataset for 2007 and 2009, we find evidence that export participation by firms in Vietnam has a positive impact on wages when taking into account firm characteristics alone. However, the exporter wage premium falls when both firm and worker characteristics are controlled for, and it decreases further when controlling for time-invariant unobservable factors by spell fixed effect estimation. While there are many studies on the export wage premium, the role of export participation on the quality of employment remains largely unexplored. By using a firm-level balanced panel dataset for the same period, our results suggest that export participation has a negative effect on employment quality. Nevertheless, the impact of export participation on both wages and employment quality vary greatly with respect to levels of technology.
    Keywords: exporting; wages; employment; Vietnam
    JEL: J21 J31 F14 F16 F19
    Date: 2012–11–01
  11. By: Kodila-Tedika, Oasis; Agbor Agbor, Julius
    Abstract: To the extent that trust is necessary to conduct informal sector business activities, its absence could possibly constrain entrepreneurial spirit and overall economic growth. This paper tests the hypothesis that differences in trust levels between countries explain the observed differences in entrepreneurial spirit amongst them. Analyzing a cross-section of 60 countries in 2010, our findings suggest that about half of the variation in entrepreneurial spirit across countries in the world is driven by trust considerations. This result is robust to regional clustering and to alternative conditioning variables. The findings of the study suggest that while formal incentives to nurture entrepreneurship must be maintained, policy-makers should also pay attention to the role of trust cultivated through informal networks.
    Keywords: Entrepreneurship; Trust; Institutions
    JEL: D2 P48 L26 Z13
    Date: 2012–10–29
  12. By: Alessia Berni; Mariavittoria Cicellin; Stefano Consiglio; Luigi Moschera (-)
    Abstract: Over the last few years, the concepts of organizational path and path dependence have become a topic of increasing interest in the new institutional debate. Our concern is to understand why organizations do not change their organizational forms and managerial practices despite institutional pressure for change. We argue that this phenomenon can be explained by means of the path dependence approach; we assume that path dependence is stronger than institutional pressure. In this context, the paper aims to analyse the process of path creation in the Temporary Work Agency field. The field is characterized by strong institutional logics embedded in a wider societal order. For our in-depth longitudinal analysis we studied the Temporary Work Agency field in Italy over a 25-year period (1986-2009).
    Keywords: Labour market; Temporary work agency; Path dependence; Organizational field; New institutional approach
    Date: 2012–07–07
  13. By: Luis Cabral
    Date: 2012
  14. By: Federico J. Díez; Alan C. Spearot
    Abstract: We develop a matching model of foreign direct investment to study how multinational firms choose between greenfield investment, acquisitions, and joint ownership. Firms must invest in a continuum of tasks to bring a product to market. Each firm possesses a core competency in the task space, but the firms are otherwise identical. For acquisitions and joint ownership, a multinational enterprise (MNE) must match with a local partner that may provide complementary expertise within the task space. However, under joint ownership, investment in tasks is shared by multiple owners and hence is subject to a holdup problem that varies with contract intensity. In equilibrium, ex ante identical multinationals enter the local matching market, and ex post, three different types of heterogeneous firms arise. Specifically, the worst matches are forgone and the MNEs invest greenfield; the middle matches operate under joint ownership; and the best matches integrate via full acquisition. We link the firm-level model to cross-country and industry predictions related to development and contract intensity, respectively, where greater contract intensity and a relatively more developed target market yield a higher share of full acquisitions. Using data on partial and full acquisitions across industries and countries, we find robust support for both predictions.
    Keywords: Investments, Foreign ; International business enterprises
    Date: 2012

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